The USD/JPY currency exchange rate appears to be trading on a larger scale, but still sideways. Namely, it has once again passed below the 104.20 level. During the most part of Friday's trading, the rate was located between the 104.00 and 104.20 levels.
In regards to the near term future, the rate could be impacted by the technical levels near the 104.20 mark, as three simple moving averages and a pivot point were located at that level.
Economic Calendar
On Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT. The rate has moved 5.3 to 11.2 pips on the announcements.
Moreover, on that day the US Flash Manufacturing and Services Producers Managers Indices or PMIs are set to be published at 14:45 GMT. The USD/JPY has moved from 3.0 to 28.6 pips on this publication.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published. During the publication of the projections the USD/JPY has moved 28.7 pips in June and 26.6 in September.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move of 4.8 to 8.7 pips. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 104.20 area.In the meantime, if the predetermined resistance does not hold, the exchange rate could target the psychological level at 104.60 within the following trading session.
Hourly Chart
On the daily candle chart, one can observe that the rate faces the additional resistance of the 55-day simple moving average, which was located at the 104.75 level.
In the meantime, note the zones of resistance and support, between which the currency exchange rate has been fluctuating since November 18.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 65% of volume was in long positions.
The situation changed on Friday, as 71% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 68% to buy the pair.